PayPal and Coinbase Remove Trading Fees on PYUSD to Drive Adoption

Zero Fees, Big Ambitions for PYUSD

In a bold move to push PYUSD into mainstream crypto use, PayPal and Coinbase announced they’re removing all trading fees for the stablecoin on Coinbase. Users can now buy, sell, and trade PYUSD without paying a cent in platform fees—and even redeem it 1:1 for USD directly on the exchange. But that’s not all. The two giants revealed plans to explore DeFi integrations, hinting at innovative use cases beyond simple trading.

"Our objectives aligned further as we deployed PYUSD in combination with our payments expertise enabling greater commerce applications," said Alex Chriss, PayPal’s CEO.

PayPal’s Steady Push to Make PYUSD a Stablecoin Contender

Since launching PYUSD on Ethereum in August 2023, PayPal has been aggressively expanding its stablecoin footprint. From integrating with Solana to partnering with MoonPay and tapping Anchorage Digital for a reward program, PayPal is clearly playing the long game. Coming this summer, PayPal will also offer a 3.7% annual yield for users holding PYUSD in their PayPal or Venmo wallets—another incentive to attract holders in a crowded stablecoin market.

Despite these efforts, PYUSD still trails far behind heavyweights like Tether (USDT) and Circle’s USDC, which dominate the $228 billion stablecoin supply. PYUSD currently holds a market cap of $866 million, with $24.3 million in daily trading volume. 

Coinbase Brings the Firepower

With Coinbase—one of the largest U.S. crypto exchanges—on board, PYUSD gains access to a massive user base. Coinbase reported a staggering $439 billion in trading volume in Q4 2024 alone. This partnership could be the catalyst PayPal needs to challenge stablecoin titans and carve out a significant share of the market.

DeFi Integrations on the Horizon

The real game-changer might be what PayPal and Coinbase are planning next: DeFi use cases. By embedding PYUSD into decentralized finance platforms, they’re looking to move beyond centralized exchanges and tap into a rapidly growing ecosystem. If successful, PYUSD could evolve from a PayPal-branded stablecoin into a serious player across global crypto markets.